India’s iron ore export shipments stood at 0.91 million tonnes (mnt) in Jan’22, according to vessel line-up data maintained with SteelMint. Notably, India’s iron ore exports which remained nil in Dec’21 resumed in Jan’22 on rising global prices.
China leading importer
China continued to be the largest importer of iron ore from India at 0.88 mnt in Jan’22, accounting for 97% share.
Shipper wise exporters in Jan’22
Praful Enterprise was the largest iron ore exporter in Jan’22 at 0.27 mnt. Rungta Mines stood as the second-largest exporter at 0.22 mnt followed by Fomento Resources with 0.10 mn t.
Why have iron ore exports rebounded?
- A rise in iron ore export prices boosted bookings. SteelMint’s assessment of India’s iron ore exports (Fe 57%) prices rose to $34/t FOB in end-Dec’21 from $26/t FOB levels in mid-Nov’21. Prices rose further to $41/t FOB towards end-Jan’22.
- Meanwhile, recovery in global iron ore prices also supported Indian iron ore export offers. The Fe 62% benchmark iron ore fines index rose to $120-125/t CFR China towards end-Dec’21 from $90/t CFR China seen in mid-Nov.
- Seaborne iron ore prices rose on a positive demand outlook ahead of the Lunar New Year holidays and Winter Olympics, coupled with easing monetary policy and rise in futures.
Outlook
Indian iron ore export volumes might remain on the lower side in Feb’22 due to the ongoing Winter Olympics in China, a period during which the country is observing steel production curbs and preferring high-grade ore (especially lumps or pellets) due to environmental concerns.
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